Sainsbury's sales rise as it attracts more shoppers

The current market capitalisation of Sainsbury's is £5.5bnPhoto: Bloomberg News

Telegraph staff and agencies

7:53AM GMT 21 Mar 2012

Like-for-like sales excluding fuel, a key industry measure, rose 2.6pc in the 10 weeks to March 17, compared to a 2.1pc rise in the previous quarter, which included Christmas.

Analysts had also been forecasting a 2.1pc increase in sales in the latest quarter, according to forecasts compiled by Sainsbury.

Total sales rose 4.6pc in the quarter.

Justin King, Sainbury's chief executive, said the company increased sales of both its basic and 'Taste the Difference' own-label ranges.

"Our own-label participation continues to lead the market, reflecting Sainsbury's reputation for great quality at fair prices. Sales of basics grew by 10pc and Taste the Difference grew by almost 20pc," he said.

He added that "the economic climate is likely to remain challenging", but that he expects "continued growth" from Sainsbury.

Sainsbury said it gained market share with its convenience shops, online sales and non-food items such as clothes and furniture.

Sainbury has performed better than larger rival Tesco, Britain's biggest supermarket chain, in recent months. In January, Tesco had to issue its first profit warning in more than 20 years and last week the head of its UK business, Richard Brasher, stepped down.